3 November 2011
Standard Bank Group and Sable Chemicals to complete first Clean Development Mechanism
project in Zimbabwe
Standard Bank Group has successfully contracted with, what is expected to be, the
first Clean Development Mechanism (CDM) project in Zimbabwe. The project for Sable
Chemicals, a fertilizer manufacturer, will be one of only a handful of nitrous oxide
abatement projects on the African continent.
The development uses a catalytic converter which allows nitrous oxide, a harmful
greenhouse gas and bi-product from the plant, to be converted into harmless gases.
This nitrous oxide abatement project can generate carbon credits and Standard Bank
Group has agreed to be the full off-taker of carbon credits from the development.
In addition, Standard Bank Group will be offering an innovative financing structure
that will allow the project to effectively pay for itself.
Sable Chemicals manufactures ammonium nitrate fertilizer, which is supplied largely
to the domestic market. The company founded in 1965, began its operations in 1969
and is located in Kwekwe, Zimbabwe. CDM technical work is being completed by MGM
Fenella Aouane, Senior Manager of the carbon trading team at Standard Bank Group,
said: "we are committed to working with companies across Africa on carbon and clean
energy projects. We are working closely with the Zimbabwean Designated National
Authority and ministers to assist them in registering this project, which will be
the first for Zimbabwe.
"CDM projects are particularly suited to the African continent. By trading carbon
credits that come from such projects, industrialised countries are able to invest
in projects that reduce greenhouse gas emissions in developing countries."
Jack Murehwa, CEO of Sable Chemicals said: "Standard Bank has played an integral
role in what is a landmark project for Sable Chemicals and Zimbabwe. The company
will now be able to benefit from carbon credits whilst also benefiting the environment
by reducing greenhouse gases that the plant produces."